<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
Franklin Resources, Inc.
------------------------
(Name of Issuer)
COMMON STOCK, par value $0.10
------------------------------
(Title of Class of Securities)
0003546131
-----------------
CUSIP Number
HELLMAN & FRIEDMAN INVESTORS, INC.
One Maritime Plaza, 12th Floor
San Francisco, California 94111
(415) 788-5111
with a copy to:
Paul J. Mundie, Esq.
Heller Ehrman White & McAuliffe
333 Bush Street
San Francisco, California 94104
(415) 772-6186
----------------------------------------
(Name, address and telephone number
of person authorized to receive
notices and communications)
November 26, 1996
-----------------------
(Date of Event which requires
filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this statement, and is filing this
statement because of Rule 13d-1(b)(3) or (4), check the following:
/ /
Check the following box if a fee is being paid with this statement: / /
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
Hellman & Friedman Capital Partners II, L.P.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ----------------------------------------------------
(b) / / ----------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only
------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): WC
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 2,926,345
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 2,926,345
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): PN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
Hellman & Friedman Investors, L.P.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / -----------------------------------------------------
(b) / / -----------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): 00 (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 2,926,345
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 2,926,345
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): PN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
Hellman & Friedman Investors, Inc.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): 00 (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 2,926,345
Owned
by ----------------------------------------------------------
Each 9) Sole Dispositive Power: -0-
Reporting
Person ----------------------------------------------------------
With
10) Shared Dispositive Power: 2,926,345
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): CO
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
H & F Orchard Partners, L.P.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): WC
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
Number 7) Sole Voting Power: -0-
of
Shares ----------------------------------------------------------
Beneficially
Owned 8) Shared Voting Power: 184,450
by
Each ----------------------------------------------------------
Reporting
Person 9) Sole Dispositive Power: -0-
With
----------------------------------------------------------
10) Shared Dispositive Power: 184,450
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): PN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
H & F Orchard Investors, L.P.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / -------------------------------------------------------
(b) / / -------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 184,450
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 184,450
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): PN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
H & F Orchard Investors, Inc.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 184,450
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 184,450
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): CO
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
H & F International Partners, L.P.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / -------------------------------------------------------
(b) / / -------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only -------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): WC
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 36,827
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 36,837
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): PN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
H&F International Investors, L.P.,
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only -------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 36,827
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 36,827
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): PN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
H & F International Investors, Inc.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: California
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 36,827
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 36,827
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): CO
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
F. Warren Hellman (individually, and as trustee of the
Hellman Family revocable Trust)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only ---------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: U.S.
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 3,147,623
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 3,147,623
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): IN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
Tully M. Friedman (individually, and as trustee of the Tully
M. Friedman Revocable Trust)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / -------------------------------------------------------
(b) / / -------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: U.S.
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 3,147,623
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 3,147,623
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): IN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
Magellan Pte. Ltd.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / ------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only ---------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): WC
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: Singapore
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 1,573,811
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 1,573,811
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): OO
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 0003546131 13D
1) Name of Reporting Persons:
Government of Singapore Investment Corporation (Ventures)
Pte. Ltd.
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / ------------------------------------------------------
(b) / / -------------------------------------------------------
- --------------------------------------------------------------------------------
3) SEC Use Only --------------------------------------------------
- --------------------------------------------------------------------------------
4) Source of Funds (See Instructions): OO (WC of other group
member)
- --------------------------------------------------------------------------------
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
- --------------------------------------------------------------------------------
6) Citizenship or Place of Organization: Singapore
- --------------------------------------------------------------------------------
7) Sole Voting Power: -0-
Number
of ----------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power: 1,573,811
Owned
by ----------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power: -0-
Person
With ----------------------------------------------------------
10) Shared Dispositive Power: 1,573,811
- --------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 4,721,435
- --------------------------------------------------------------------------------
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
- --------------------------------------------------------------------------------
13) Percent of Class Represented by amount in Row (11):
5.48%
- --------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions): OO
- --------------------------------------------------------------------------------
<PAGE>
INTRODUCTION
Hellman & Friedman Investors, Inc. ("Investors, Inc.") hereby amends and
restates the Statement on Schedule 13D (the "Statement") originally filed by the
group of reporting persons named above on August 10, 1992. This Amendment No. 1
to the Statement is filed on behalf of each such reporting person pursuant to
the Agreement with respect to Schedule 13D attached as Exhibit 7(1).
Pursuant to Rule 101 of Regulation S-T, this Amendment to the Statement
restates the entire text of the Statement as amended through the date hereof.
COVER PAGES
The cover pages to the Statement for the Reporting Persons identified
therein are amended to read as shown on the cover pages included in this
Amendment.
Item 1. SECURITY AND ISSUER.
Item 1 of the Statement is amended to read in its entirety as follows:
The class of equity securities to which this Statement relates is the
common stock, $.10 par value (the "Common Stock"), of Franklin Resources, Inc.
(the "Issuer"), a corporation incorporated under the laws of Delaware whose
principal executive offices are located at 777 Mariners Island Boulevard, San
Mateo, California 94404.
<PAGE>
Item 2. IDENTITY AND BACKGROUND.
Item 2 of the Statement is amended to read in its entirety as follows:
This Statement is filed on behalf of Hellman & Friedman Capital Partners
II, L.P., a California limited partnership ("HFCP II"), Hellman & Friedman
Investors, L.P., a California limited partnership, the general partner of HFCP
II ("Investors, L.P."), Hellman & Friedman Investors, Inc., a California
corporation, the general partner of Investors, L.P. ("Investors, Inc."), H&F
Orchard Partners, L.P., a California limited partnership, ("Orchard Partners"),
H&F Orchard Investors, L.P., a California limited partnership, the general
partner of Orchard Partners ("Orchard Investors, L.P."), H&F Orchard Investors,
Inc., a California corporation, the general partner of Orchard Investors, L.P.
("Orchard Investors, Inc."), H&F International Partners, L.P., a California
limited partnership ("International Partners"), H&F International Investors,
L.P., a California limited partnership, the general partner of International
Partners ("International Investors, L.P."), H&F International Investors, Inc., a
California corporation, the general partner of International Investors, L.P.
("International Investors, Inc."), and F. Warren Hellman and Tully M. Friedman
(each, trustee of a revocable trust which is a 50% shareholder in each of
Investors, Inc., Orchard Investors, Inc., and International Investors, Inc.).
The foregoing partnerships, corporations and individuals (referred to
collectively herein as the "Hellman & Friedman
<PAGE>
Reporting Persons"), because of common ultimate control of their investment
decisions by Messrs. Hellman and Friedman, constitute a "group" for purposes of
Section 13(d) of the Securities Exchange Act of 1934 ("Exchange Act"). Although
Messrs. Hellman and Friedman are not obligated to cause all shares owned by the
group to be voted similarly, they are likely to do so.
This Statement is also filed on behalf of Magellan Pte. Ltd., a corporate
agency of the government of Singapore ("Magellan"), and on behalf of the
Government of Singapore Investment Corporation (Ventures) Pte. Ltd., a corporate
agency of the government of Singapore ("GSIC"). Magellan is controlled by GSIC.
Magellan and GSIC (referred to collectively herein as the "Singapore Reporting
Persons"), because of ultimate control of their investment decisions by GSIC,
constitute a "group" for purposes of Section 13(d) of the Exchange Act.
Collectively, the Hellman & Friedman Reporting Persons and the Singapore
Reporting Persons (referred to collectively herein as the "Reporting Persons"),
because of their parallel purchase and disposition of certain subordinated
debentures and option rights, as described more fully below under Item 3,
constitute a "group" for purposes of Section 13(d) of the Exchange Act.
a. HFCP II.
--------
The principal executive offices of HFCP II are located at One Maritime
Plaza, 12th Floor, San Francisco, California 94111. HFCP II was formed for the
purpose of making investments
<PAGE>
in a variety of special situations, including without limitation, financial
restructurings, recapitalizations and financial service start-up companies.
HFCP II is a limited partnership formed in June 1991 under the laws of the State
of California.
b. INVESTORS, L.P.
---------------
The principal executive offices of Investors, L.P. are located at One
Maritime Plaza, 12th Floor, San Francisco, California 94111. Investors, L.P. is
a limited partnership formed in June 1991 under the laws of the State of
California for the purpose of serving as the general partner of HFCP II.
c. INVESTORS, INC.
---------------
The principal executive offices of Investors, Inc. are located at One
Maritime Plaza, 12th Floor, San Francisco, California 94111. Investors, Inc. is
a California corporation whose principal business is serving as the general
partner of Investors, L.P. The sole shareholders of Investors, Inc. are two
revocable trusts. F. Warren Hellman is a trustee of one of the trusts and Tully
M. Friedman is trustee of the other trust. The names, business addresses,
present principal occupations and citizenships of the executive officers and
members of the Board of Directors of Investors, Inc. are set forth on Schedule 1
hereto.
<PAGE>
d. ORCHARD PARTNERS.
-----------------
The principal executive offices of Orchard Partners are located at One
Maritime Plaza, 12th Floor, San Francisco, California 94111. Orchard Partners
was formed for the purpose of making investments in a variety of special
situations, including without limitation, financial restructurings,
recapitalizations and financial service start-up companies. Orchard Partners is
a limited partnership formed in June 1991 under the laws of the State of
California.
e. ORCHARD INVESTORS, L.P.
-----------------------
The principal executive offices of Orchard Investors, L.P. are located
at One Maritime Plaza, 12th Floor, San Francisco, California 94111. Orchard
Investors, L.P. is a limited partnership formed in June 1991 under the laws of
the State of California for the purpose of serving as the general partner of
Orchard Partners.
f. ORCHARD INVESTORS, INC.
-----------------------
The principal executive offices of Orchard Investors, Inc. are located
at One Maritime Plaza, 12th Floor, San Francisco, California 94111. Orchard
Investors, Inc. is a California corporation whose principal business is serving
as the general partner of Orchard Investors, L.P. The sole shareholders of
Orchard Investors, Inc. are two revocable trusts. F. Warren
<PAGE>
Hellman is a trustee of one of the trusts and Tully M. Friedman is trustee of
the other trust. The names, business addresses, present principal occupations
and citizenships of the executive officers and members of the Board of Directors
of Orchard Investors, Inc. are set forth on Schedule 2 hereto.
g. INTERNATIONAL PARTNERS.
-----------------------
The principal executive offices of International Partners are located
at One Maritime Plaza, 12th Floor, San Francisco, California 94111.
International Partners was formed for the purpose of making investments in a
variety of special situations, including without limitation, financial
restructurings, recapitalizations and financial service start-up companies.
International Partners is a limited partnership formed in December 1991 under
the laws of the State of California.
h. INTERNATIONAL INVESTORS, L.P.
-----------------------------
The principal executive offices of International Investors, L.P. are
located at One Maritime Plaza, 12th Floor, San Francisco, California 94111.
International Investors, L.P. is a limited partnership formed in December 1991
under the laws of the State of California for the purpose of serving as the
general partner of International Partners.
<PAGE>
i. INTERNATIONAL INVESTORS, INC.
-----------------------------
The principal executive offices of International Investors, Inc. are
located at One Maritime Plaza, 12th Floor, San Francisco, California 94111.
International Investors, Inc. is a California corporation whose principal
business is serving as the general partner of International Investors, L.P. The
sole shareholders of International Investors, Inc. are two revocable trusts. F.
Warren Hellman is a trustee of one of the trusts and Tully M. Friedman is
trustee of the other trust. The names, business addresses, present principal
occupations and citizenships of the executive officers and members of the Board
of Directors of International Investors, Inc. are set forth on Schedule 3
hereto.
j. F. WARREN HELLMAN.
------------------
Mr. Hellman is a trustee of a revocable trust which owns 50% of the
outstanding common stock of Investors, Inc., Orchard Investors, Inc. and
International Investors, Inc. Mr. Hellman's business address is One Maritime
Plaza, 12th Floor, San Francisco, California 94111. Mr. Hellman is a partner of
Hellman & Friedman, a general partnership formed under the laws of the State of
California, and as such is primarily engaged in investment banking activities.
<PAGE>
k. TULLY M. FRIEDMAN.
------------------
Mr. Friedman is trustee of a revocable trust which owns 50% of the
outstanding common stock of Investors, Inc., Orchard Investors, Inc. and
International Investors, Inc. Mr. Friedman's business address is One Maritime
Plaza, 12th Floor, San Francisco, California 94111. Mr. Friedman is a partner
of Hellman & Friedman, a general partnership formed under the laws of the State
of California, and as such is primarily engaged in investment banking
activities.
l. MAGELLAN.
---------
The principal executive offices of Magellan are located at 250 North
Bridge Road, #33-00, Singapore 0617. Magellan is a corporate agency of the
government of Singapore, formed under the laws of Singapore, which is controlled
by GSIC.
m. GSIC.
-----
The principal executive offices of GSIC are located at 250 North
Bridge Road, #33-00, Singapore 0617. GSIC is a corporate agency of the
government of Singapore, formed under the laws of Singapore.
During the last five years none of the Reporting Persons, nor any of
the directors or executive officers of each of Investors, Inc., Orchard
Investors, Inc. and International
<PAGE>
Investors, Inc. has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor has any of such persons been a party to
a civil proceeding of a judicial or administrative body of competent
jurisdiction as a result of which such person was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 of the Statement is amended to read in its entirety as follows:
As of July 30, 1992, HFCP II, Orchard Partners, International Partners,
Magellan, the Issuer and Templeton Worldwide, Inc., a Delaware corporation then
known as TFII, Inc. wholly owned by the Issuer ("Templeton"), entered into that
certain Subordinated Debenture Purchase Agreement, a copy of which is attached
hereto as Exhibit 7(2) ("Purchase Agreement"). On August 3, 1992, pursuant to
the Purchase Agreement, HFCP II purchased Templeton's 6.25% subordinated
debentures ("Debentures") (with an aggregate face amount of $92,970,000) and
corresponding option rights to acquire common stock of the Issuer ("Option
Rights") for an aggregate purchase price of $92,970,000; Orchard Partners
purchased Debentures (with an aggregate face amount of $5,860,000) and
corresponding Option Rights for an aggregate purchase price of $5,860,000;
International Partners
<PAGE>
purchased Debentures (with an aggregate face amount of $1,170,000) and
corresponding Option Rights for an aggregate purchase price of $1,170,000; and
Magellan purchased Debentures (with an aggregate face amount of $50,000,000) and
corresponding Option Rights for an aggregate purchase price of $50,000,000. The
Purchase Agreement attached hereto as Exhibit 7(2) is incorporated herein by
this reference.
The funds used by HFCP II, Orchard Partners and International Partners to
pay their respective portions of the purchase price were obtained by each such
partnership from capital contributions made by their respective partners
pursuant to preexisting capital commitments. The funds used by Magellan to pay
its portion of the purchase price were funds of the government of Singapore.
HFCP II, Orchard, International and Magellan are occasionally referred to herein
as the "Purchasers".
On November 26, 1996 the Purchasers entered into a Debenture Repurchase
Agreement (the "Repurchase Agreement") with the Issuer and Templeton pursuant to
which the Issuer has agreed to purchase from the Purchasers an aggregate of
$74,984,993.70 face amount of the Purchasers' Debentures and related Option
Rights for aggregate consideration of US $165,807,233.73 as more specifically
provided in the Repurchase Agreement attached hereto as Exhibit 7(7). On the
same date, the Purchasers, the Issuer and Templeton entered into an Option Right
Exercise Agreement (the "Option Agreement") pursuant to which the Purchasers
will exercise Option Rights to acquire 2,361,190 shares of the
<PAGE>
Issuer's Common Stock; the exercise price of the Option Rights will be paid with
the proceeds from the redemption of $75,015,006.30 face amount of Debentures.
Such Debentures represent all of the Purchaser's Debentures not repurchased
pursuant to the Repurchase Agreement. The Option Agreement also provides for a
cash payment to be made by the Parent to the Purchasers; the amount of such
payment depends on the closing date of the option exercise. The Option
Agreement is attached hereto as Exhibit 7(8).
Item 4. PURPOSE OF TRANSACTION.
The Purchasers acquired the Debentures and the corresponding Option Rights
for investment purposes. As described in Item 3 above, on November 26, 1996 the
Purchasers entered into the Repurchase Agreement described in Item 3 pursuant to
which the Purchasers have sold to the Issuer an aggregate face amount of
$74,984,993.70 of the Debentures representing approximately one-half of their
holdings, together with the related Option Rights, for aggregate consideration
of US $165,807,233.73. On the same date, Purchasers also entered into the
Option Agreement described in Item 3 pursuant to which the Purchasers shall
surrender their remaining Debentures to exercise the Option Rights associated
with such Debentures; as a result of exercising such Option Rights, the
Purchases will acquire 2,361,190 shares of the Parent's Common Stock. The
Reporting Persons expect to hold such Common Stock for investment purposes.
<PAGE>
None of the Reporting Persons has any present intention to acquire control
over the Issuer. Subject to their obligations pursuant to the Purchase
Agreement and the Holders' Rights Agreement entered into on July 30, 1992, among
the Issuer, Templeton, HFCP II, Orchard Partners, International Partners and
Magellan, a copy of which is attached hereto as Exhibit 7(3) ("Holders' Rights
Agreement"), the Reporting Persons intend to review on a continuing basis their
respective investments in the Issuer and, as and when permitted by the Purchase
Agreement and the Holders' Rights Agreement, may determine to acquire additional
securities of the Issuer, or to sell or otherwise dispose of all or part of
their remaining investment in the Issuer or their investment in Templeton. The
Holders' Rights Agreement attached hereto as Exhibit 7(3) is incorporated herein
by this reference.
As of July 30, 1992, the Issuer, Templeton and HFCP II entered into that
certain Management Rights Agreement, a copy of which is attached hereto as
Exhibit 7(4) ("Management Rights Agreement"). Pursuant to the Management Rights
Agreement, HFCP II has the right to nominate F. Warren Hellman or, in the event
that Mr. Hellman should no longer be an affiliate (within the meaning of Rule
405 under the Securities Act of 1933, as amended) of HFCP II, another designee
of HFCP II reasonably satisfactory to the Issuer (in either case, the
"Nominee"), to be elected as a member of the Board of Directors of each of the
Issuer and Templeton. To the extent permitted by law, the Issuer shall use its
best efforts to cause the Nominee to become nominated for
<PAGE>
election by the stockholders of the Issuer as a member of the Board of Directors
and shall vote all shares for which the Issuer's management or the Board of
Directors holds proxies or that the Issuer's management or the Board of
Directors is otherwise entitled to vote in favor of the election of such
Nominee. To the extent permitted by law, Templeton shall use its best efforts
to cause the Nominee to become nominated for election by the Issuer as a member
of the Board of Directors of Templeton. The Management Rights Agreement shall
terminate on the date that HFCP II, Orchard Partners and International Partners
no longer are, in the aggregate, the record or beneficial owners of Common Stock
of the Issuer issuable upon exercise of Option Rights corresponding to
Debentures having a face value of at least $50 million (assuming for this
purpose that all unexercised Option Rights have been exercised). The Issuer and
the Company have appointed Mr. Hellman as a director, and Mr. Hellman has
accepted such appointment effective as of August 10, 1992. The Management
Rights Agreement attached hereto as Exhibit 7(4) is incorporated herein by this
reference.
Pursuant to the Holders' Rights Agreement, the Purchasers have agreed to
certain voting, transfer and standstill arrangements whereby their future
disposition of Debentures, guarantees by the Issuer of Templeton's obligations
under the Debentures ("Debentures Guarantees"), Option Rights and Common Stock,
and their future acquisition of Common Stock and any other securities of the
Issuer entitled to vote generally in the election of directors or any other
securities convertible into,
<PAGE>
exchangeable for or exercisable for, any of the foregoing, are restricted. In
addition, the Purchasers agreed not to participate in, or encourage, any
solicitation of proxies to vote for the approval of any proposals submitted to
the stockholders of the Issuer or to participate in any way in acquisitions,
restructurings, recapitalizations or similar transactions of the Issuer or any
of its affiliates. These restrictions may impede the acquisition of control of
the Issuer by the Reporting Persons or others. The Holders' Rights Agreement
also grants the Purchasers certain registration rights with respect to all
Debentures, Debentures Guarantees and Option Rights not previously sold to the
public held by the Purchasers, and Common Stock issuable upon exercise of the
Option Rights not previously sold to the public issued or issuable to the
Purchasers.
Except as otherwise indicated in this Item 4, the Reporting Persons do not
have any present plans or proposals with respect to the Issuer that relate to or
could result in the occurrence of any of the events set forth in paragraphs (a)
- - (j) of Item 4 of Schedule 13D.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 of the Statement is amended in its entirety to read as follows:
(a) and (b). The aggregate number of shares and percentage of Common
Stock of the Issuer (based upon the number of shares of Common Stock the
Registering Persons understand to
<PAGE>
have been outstanding on October 31, 1996 beneficially owned by each person
named in Item 2, as well as the number of shares of Common Stock as to which
such person is deemed to have sole power to vote or to direct the vote, shared
power to vote or to direct the vote, sole power to dispose or to direct the
disposition, or shared power to dispose or direct the disposition, in each case
after giving effect to the transactions contemplated by the Repurchase
Agreement, is set forth in the following table.
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
No. of Shares
Beneficially Percentage Power to Vote Power to Dispose
Person Owned of Class Sole Shared Sole Shared
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
HFCP II 4,721,435 5.48% 0 2,926,345 0 2,926,345
- -------------------------------------------------------------------------------------------------------------------------
Investors, L.P. 4,721,435 5.48% 0 2,926,345 0 2,926,345
- -------------------------------------------------------------------------------------------------------------------------
Investors, Inc. 4,721,435 5.48% 0 2,926,345 0 2,926,345
- -------------------------------------------------------------------------------------------------------------------------
Orchard Partners 4,721,435 5.48% 0 184,450 0 184,450
- -------------------------------------------------------------------------------------------------------------------------
Orchard Investors, L.P. 4,721,435 5.48% 0 184,450 0 184,450
- -------------------------------------------------------------------------------------------------------------------------
Orchard Investors, Inc. 4,721,435 5.48% 0 184,450 0 184,450
- -------------------------------------------------------------------------------------------------------------------------
International Partners 4,721,435 5.48% 0 36,827 0 36,827
- -------------------------------------------------------------------------------------------------------------------------
International Investors, L.P. 4,721,435 5.48% 0 36,827 0 36,827
- -------------------------------------------------------------------------------------------------------------------------
International Investors, Inc. 4,721,435 5.48% 0 36,827 0 36,827
- -------------------------------------------------------------------------------------------------------------------------
F. Warren Hellman 4,721,435 5.48% 0 3,147,623 0 3,147,623
- -------------------------------------------------------------------------------------------------------------------------
Tully M. Friedman 4,721,435 5.48% 0 3,147,623 0 3,147,623
- -------------------------------------------------------------------------------------------------------------------------
Magellan 4,721,435 5.48% 0 1,573,811 0 1,573,811
- -------------------------------------------------------------------------------------------------------------------------
GSIC 4,721,435 5.48% 0 1,573,811 0 1,573,811
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
The information required by Item 2 with respect to persons with whom voting
or dispositive power is shared is set forth in Item 2. Each of HFCP II,
Investors, L.P. and Investors, Inc. share power to vote and to dispose of the
2,926,345 shares of
<PAGE>
Common Stock beneficially owned by them with each other and with trusts of which
Messrs. Hellman and Friedman are trustees and as such ultimately control the
voting and disposition of such shares; each of Orchard Partners, Orchard
Investors, L.P. and Orchard Investors, Inc. similarly share power to vote and
power to dispose of the 184,450 shares of Common Stock beneficially owned by
them with each other and with trusts of which Messrs. Hellman and Friedman are
trustees and as such ultimately control the voting and disposition of such
shares. Each of International Partners, International Investors, L.P. and
International Investors, Inc. similarly share power to vote and power to dispose
of the 36,827 shares of Common Stock beneficially owned by them with each other
and with trusts of which Messrs. Hellman and Friedman are trustees and as such
ultimately control the voting and disposition of such shares. Messrs. Hellman
and Friedman share power to vote and power to dispose of the 3,147,623 shares of
Common Stock beneficially owned by them with each other and the various other
Hellman and Friedman Reporting Persons.
Magellan and GSIC share power to vote and power to dispose of the 1,573,811
shares of Common Stock beneficially owned by them with each other. All shares
are held subject to the Debenture Repurchase Agreement and Option Right Exercise
Agreement. Magellan is controlled by GSIC and, therefore, GSIC ultimately
controls the voting and disposition of such shares. GSIC is a corporate agency
of the government of
<PAGE>
Singapore responsible for investing certain funds of the government of
Singapore. To the best knowledge of GSIC, neither GSIC nor any other agency
controlled by GSIC has any interest in any shares of Common Stock of the Issuer.
However, other agencies of the government of Singapore that are responsible for
managing other government funds may have an interest in shares of Common Stock
of the Issuer.
(c) To the best knowledge of the Reporting Persons, no person described in
paragraph (a) of this Item 5 has effected any transaction in the Common Stock of
the Issuer during the past 60 days other than as provided for in the Repurchase
Agreement described in Items 3 and 4 above and attached hereto as Exhibit 7(7).
(d) To the best knowledge of the Reporting Persons, no person other than
the Reporting Persons has the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, Common Stock of the
Issuer.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
Item 6 of the Schedule is amended in its entirety to read as follows:
See Item 3 and Item 4 above.
<PAGE>
The holders of Debentures and Option Rights are entitled to elect to have
such securities repurchased by the Issuer and Templeton upon certain changes of
control of the Issuer or certain mergers, consolidations, sales of assets,
liquidations or recapitalizations of the Issuer or Templeton. Such repurchase
rights are more fully described in the Holders' Rights Agreement and the
Indenture, dated as of July 30, 1992, among Templeton, the Issuer and The Chase
Manhattan Bank (National Association) ("Indenture") attached hereto as
Exhibit 7(3) and Exhibit 7(6), respectively, which are incorporated herein by
this reference.
As of July 30, 1992, HFCP II, Orchard Partners, International Partners and
Magellan entered into that certain Agreement Among Purchasers, a copy of which
is attached hereto as Exhibit 7(5) ("Agreement Among Purchasers"). As a result
of the transactions contemplated by the Repurchasing Agreement and the Option
Agreement attached as Exhibits 7(7) and 7(8), the Agreement among Purchasers
will terminate.
Except as set forth herein, none of the Reporting Persons, nor, to the best
knowledge of the Reporting Persons, any of the executive officers or directors
(if applicable) of the Reporting Persons, has any contracts, arrangements,
understandings or relationships (legal or otherwise) with any person with
respect to transfer or voting of any securities of the Issuer, finder's fees,
joint ventures, loan or option arrangements, guarantees of profits or the giving
or withholding of proxies.
<PAGE>
The description of the Purchase Agreement, Holders' Rights Agreement,
Management Rights Agreement, Agreement Among Purchasers, Indenture, Repurchase
Agreement and Option Agreement contained in Items 3, 4 and 6 is qualified in its
entirety by the complete text of such documents (including exhibits thereto), a
copy of which are attached hereto as Exhibit 7(2), Exhibit 7(3), Exhibit 7(4),
Exhibit 7(5), Exhibit 7(6), Exhibit 7(7) and Exhibit 7(8), respectively.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Statement is amended in its entirety to read as follows:
Exhibit 7 (1). Agreement with respect to Schedule 13D.
Exhibit 7 (2). Subordinated Debenture Purchase Agreement, dated as of July 30,
1992, among the Issuer, Templeton, HFCP II, Orchard Partners, International
Partners and Magellan.
Exhibit 7 (3). Holders' Rights Agreement, dated as of July 30, 1992, among the
Issuer, Templeton, HFCP II, Orchard Partners, International Partners and
Magellan.
Exhibit 7 (4). Management Rights Agreement, dated as of July 30, 1992, among
the Issuer, Templeton and HFCP II.
<PAGE>
Exhibit 7 (5). Agreement among Purchasers, dated as of July 30, 1992, among
HFCP II, Orchard Partners, International Partners and Magellan.
Exhibit 7 (6). Indenture, dated as of July 30, 1992, among Templeton, the
Issuer and The Chase Manhattan Bank (National Association).
Exhibit 7 (7). Debenture Repurchase Agreement, dated as of November 26, 1996,
among Templeton, the Issuer, and the Purchasers.
Exhibit 7 (8). Option Right Exercise Agreement, dated as of November 26, 1996,
among Templeton, the Issuer, and the Purchasers.
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of the undersigned's knowledge and
belief, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
HELLMAN & FRIEDMAN INVESTORS, INC.
Dated: November 26, 1996 By: /s/Philip U. Hammarskjold
-------------------------------------
Title: Vice President
----------------------------------
<PAGE>
LIST OF EXHIBITS
Exhibit No DESCRIPTION PAGE
----------- ----
7(1) Agreement with respect to Schedule 13D. *
7(2) Purchase Agreement. *
7(3) Holders' Rights Agreement. *
7(4) Management Rights Agreement. *
7(5) Agreement Among Purchasers. *
7(6) Indenture *
7(7) Debenture Repurchase Agreement
7(8) Option Right Exercise Agreement
- ------------------------
* Previously filed on paper; not required to be refiled electronically pursuant
to Regulation S-T.
<PAGE>
SCHEDULE 1
HELLMAN & FRIEDMAN INVESTORS, INC. ("INVESTORS, INC.")
DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
Present Principal
Name and Address1 Title Principal Occupation Business and Address
----------------- ----- -------------------- --------------------
<S> <C> <C> <C>
F. Warren Hellman Director and Partner, Investment Banking
One Maritime Plaza President Hellman & Friedman One Maritime Plaza
12th Floor Management, Inc. 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Tully M. Friedman Director, Partner, Investment Banking
One Maritime Plaza Vice President and Hellman & Friedman One Maritime Plaza
12th Floor Treasurer 12th Floor
San Francisco, CA 94111 Management, Inc. San Francisco, CA 94111
Matthew R. Barger Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John M. Pasquesi Vice President and Partner, Investment Banking
One Maritime Plaza Secretary Hellman & Friedman One Maritime Plaza
12th Floor Management, Inc. 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John L. Bunce, Jr. Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Marco W. Hellman Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Mitchell R. Cohen Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Georgia Lee Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
- --------------------------
1 Each of Messrs. F. Warren Hellman, Friedman, Barger, Pasquesi, Bunce and Marco W. Hellman, Cohen, Niehaus, Hammarskjold and Ms.
Lee are United States Citizens.
<PAGE>
Present Principal
Name and Address1 Title Principal Occupation Business and Address
----------------- ----- -------------------- --------------------
Joseph M. Niehaus Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Philip U. Hammarskjold Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
</TABLE>
- ---------------------------
1 Each of Messrs. F. Warren Hellman, Friedman, Barger, Pasquesi, Bunce and
Marco W. Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United
States Citizens.
<PAGE>
SCHEDULE 2
H & F ORCHARD INVESTORS, INC. ("ORCHARD INVESTORS")
DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
Present Principal
Name and Address1 Title Principal Occupation Business and Address
----------------- ----- -------------------- --------------------
<S> <C> <C> <C>
F. Warren Hellman Director and Partner, Investment Banking
One Maritime Plaza President Hellman & Friedman One Maritime Plaza
12th Floor Management, Inc. 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Tully M. Friedman Director, Partner, Investment Banking
One Maritime Plaza Vice President and Hellman & Friedman One Maritime Plaza
12th Floor Treasurer 12th Floor
San Francisco, CA 94111 Management, Inc. San Francisco, CA 94111
Matthew R. Barger Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John M. Pasquesi Vice President and Partner, Investment Banking
One Maritime Plaza Secretary Hellman & Friedman One Maritime Plaza
12th Floor Management, Inc. 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John L. Bunce, Jr. Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Marco W. Hellman Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Mitchell R. Cohen Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Georgia Lee Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
- -------------------------
1 Each of Messrs. F. Warren Hellman, Friedman, Barger, Pasquesi, Bunce and
Marco W. Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United States
Citizens.
<PAGE>
Present Principal
Name and Address1 Title Principal Occupation Business and Address
----------------- ----- -------------------- --------------------
Joseph M. Niehaus Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Philip U. Hammarskjold Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
- ---------------------------
</TABLE>
1 Each of Messrs. F. Warren Hellman, Friedman, Barger, Pasquesi, Bunce and
Marco W. Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United
States Citizens.
<PAGE>
SCHEDULE 3
H & F INTERNATIONAL INVESTORS, INC. ("INTERNATIONAL INVESTORS, INC.")
DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
Present Principal
Name and Address1 Title Principal Occupation Business and Address
----------------- ----- -------------------- --------------------
<S> <C> <C> <C>
F. Warren Hellman Director and Partner, Investment Banking
One Maritime Plaza President Hellman & Friedman One Maritime Plaza
12th Floor Management, Inc. 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Tully M. Friedman Director, Partner, Investment Banking
One Maritime Plaza Vice President and Hellman & Friedman One Maritime Plaza
12th Floor Treasurer 12th Floor
San Francisco, CA 94111 Management, Inc. San Francisco, CA 94111
Matthew R. Barger Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John M. Pasquesi Vice President and Partner, Investment Banking
One Maritime Plaza Secretary Hellman & Friedman One Maritime Plaza
12th Floor Management, Inc. 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John L. Bunce, Jr. Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Marco W. Hellman Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Mitchell R. Cohen Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Georgia Lee Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
- ---------------------------
1 Each of Messrs. F. Warren Hellman, Friedman, Barger, Pasquesi, Bunce and
Marco W. Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United
States Citizens.
<PAGE>
Present Principal
Name and Address1 Title Principal Occupation Business and Address
----------------- ----- -------------------- --------------------
Joseph M. Niehaus Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Philip U. Hammarskjold Vice President Partner, Investment Banking
One Maritime Plaza Management, Inc. Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
</TABLE>
- ---------------------------
1 Each of Messrs. F. Warren Hellman, Friedman, Barger, Pasquesi, Bunce and
Marco W. Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United
States Citizens.
<PAGE>
EXHIBIT 7(7)
Debenture Repurchase Agreement
<PAGE>
DEBENTURE REPURCHASE AGREEMENT
This Debenture Repurchase Agreement (the "Agreement") is entered into
as of November 26, 1996, by and among FRANKLIN RESOURCES, INC., a Delaware
corporation (the "Parent"), TEMPLETON WORLDWIDE, INC., a Delaware corporation
(the "Company" and, with Parent, the "Issuer"), HELLMAN & FRIEDMAN CAPITAL
PARTNERS II, L.P., a California limited partnership ("HFCP II"), H&F ORCHARD
PARTNERS, L.P., a California limited partnership ("Orchard Partners"), H&F
INTERNATIONAL PARTNERS, L.P., a California limited partnership ("International
Partners"), and MAGELLAN PTE. LTD., a corporation formed under the laws of
Singapore ("Magellan" and, with HFCP II, Orchard Partners and International
Partners, collectively the "Sellers").
BACKGROUND
1. The Sellers are presently the holders of an aggregate of One
Hundred Fifty Million Dollars ($150,000,000) principal amount of 6.25%
Subordinated Debentures due 2002 (the "Debentures"), which Debentures were
issued pursuant to an indenture among the Company, Parent and the Chase
Manhattan Bank (the "Trustee") dated as of July 30, 1992 (the "Indenture").
Each Debenture was issued by the Company and guaranteed by the Parent as
contemplated by the Indenture. Each Debenture has attached thereto an Option
Right (as defined in the Indenture) issued by the Parent, which Option Right
affords the holder of the Debenture the right to acquire shares of the Parent's
common stock, par value ten cents ($.10) per share (the "Common Stock").
2. The Parent, the Company and the Sellers have entered into this
Agreement to provide for the purchase by the Parent of a portion of the
outstanding Debentures and associated Option Rights held by the Sellers as more
particularly provided herein. Capitalized terms used without definition herein
shall have the meaning ascribed to them in the Indenture.
NOW, THEREFORE, the parties hereto agree as follows:
Section 1. PURCHASE AND SALE. Subject to the Purchase Closing
Conditions set forth in Section 5 hereof, Sellers agree severally to sell and
do hereby sell to Parent, and Parent agrees to purchase and does hereby
purchase, an aggregate Seventy-four million nine hundred eighty-four thousand
nine hundred ninety-three dollars and seventy cents (U.S. $74,984,993.70)
face amount of Debentures (the "Purchased Debentures") and the associated
Option Rights (the "Purchased Option Rights" and, with the Purchased
Debentures, the "Purchased Securities"). Delivery of the Purchased Securities
shall be made on the second business day following satisfaction of the
Purchase Closing Conditions (as defined herein) or on such other date as the
parties shall
-1-
<PAGE>
mutually agree (the "Closing Date") by delivery of the Debentures and associated
Option Rights presently held by the Sellers to the Parent. Simultaneously with
the receipt of such Debentures, the Parent shall pay to the Sellers in
immediately available funds the amount of One hundred sixty-five million eight
hundred seven thousand two hundred thirty-three dollars and seventy-three cents
(U.S. $165,807,233.73), plus accrued interest on the Purchased Debentures from
the Interest Payment Date immediately preceding the Closing Date through and
including the Closing Date, by wire transfer to the accounts designated in
writing by the Sellers. The aggregate face amount of the Purchased Debentures
to be sold by each Seller and the aggregate purchase price to be paid by the
Parent to each such Seller, and the remaining face amount of Debentures
continuing to be held by such Seller shall be as set forth in Schedule I hereto.
Section 2. ALLOCATION OF PURCHASE PRICE. The Parent, the Company and
the Sellers hereby agree that the purchase price to be paid by the Parent to
each Seller is allocated between the Purchased Debentures and the Purchased
Option Rights as follows: an amount equal to the Accreted Issue Price (as
defined in the Indenture) of the Purchased Debentures, plus the accrued but
unpaid interest on such Purchased Debentures, shall be the purchase price for
the Purchased Debentures, with the balance representing the purchase price for
the associated Purchased Option Rights.
Section 3. REPRESENTATIONS AND WARRANTIES OF SELLER. Each Seller
severally represents and warrants that at the Closing: (a) the execution,
delivery and performance by each such Seller of this Agreement (i) are within
the corporate or partnership power and authority, as appropriate, of each such
Seller, (ii) have been duly authorized by all necessary action on the part of
such Seller, (iii) do not conflict with, or result in a breach of the terms,
conditions or provisions of, or constitute a default under, a limited
partnership agreement or organizational document of such Seller or any material
contract or agreement to which such Seller is a party, and (iv) will not violate
any order, writ, injunction, decree, judgment, ruling, law, rule or other
regulation of any court or governmental authority, domestic or foreign,
applicable to such Seller or its properties; (b) this Agreement constitutes a
legal, valid and binding agreement of such Seller enforceable against such
Seller in accordance with its terms; and (c) the delivery of the Purchased
Securities to the Parent pursuant to this Agreement will transfer to Parent
legal and valid title thereto free and clear of all claims, liens, charges or
encumbrances of any kind or nature whatsoever created by Sellers.
Section 4. REPRESENTATIONS AND WARRANTIES OF THE ISSUERS. Each
Issuer represents and warrants that at the Closing: (a) the execution, delivery
and performance by each
-2-
<PAGE>
Issuer of this Agreement (i) are within the corporate power and authority of
each Issuer, (ii) has been duly authorized by all necessary corporate or other
action on the part of each Issuer, (iii) does not conflict with, or result in a
breach of the terms, conditions or provisions of, or constitute a default under,
the certificate of incorporation, as amended, or bylaws of either Issuer or any
material contract or agreement to which such Issuer or any material contract or
agreement to which either Issuer is a party, and (iv) will not violate any
order, writ, injunction, decree, judgment, ruling, law, rule or regulation of
any court or governmental authority, domestic or foreign, applicable to either
Issuer or their subsidiaries or any of their respective properties; and (b) this
Agreement constitutes a legal, valid and binding agreement of each Issuer
enforceable against it in accordance with its terms.
Section 5. CONDITIONS TO PURCHASE. The obligations of Sellers and
Parent to close the transactions contemplated by Section 1 hereof shall be
subject to satisfaction of the following conditions (the "Purchase Closing
Conditions"):
(a) The Parent shall have obtained the consent of the Majority
Lenders under the Credit Agreement;
(b) The representations and warranties of each party to the other set
forth in Sections 3 and 4 hereof shall continue to be true and correct
on and as of the Closing Date, and each party shall deliver to the
other a certificate confirming such fact executed by a duly authorized
officer of such party; and
(c) The conditions to all parties' obligations to close the
transactions contemplated by the Option Right Exercise Agreement of
even date herewith set forth in Section 4 thereof shall have been
satisfied or waived.
If the Closing Date has not occurred prior to January 1, 1997, this Agreement
shall be of no further force or effect.
Section 6. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original and all
of which together shall be deemed to be one and the same instrument.
Section 7. GOVERNING LAW. This Agreement shall be governed in all
respects by the laws of the State of California as such laws are applied to
agreements between California residents entered into and performed entirely
within California.
-3-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first written above.
FRANKLIN RESOURCES, INC.
By: /s/ Illegible
-------------------------
Title: Senior Vice President
----------------------
TEMPLETON WORLDWIDE, INC.
By: /s/ Illegible
-------------------------
Title: Senior Vice President
----------------------
-4-
<PAGE>
HELLMAN & FRIEDMAN CAPITAL PARTNERS II, L.P.
By: Hellman & Friedman Investors, L.P.,
its general partner
By: Hellman & Friedman Investors, Inc.,
its general partner
By: /s/ Philip U. Hammarskjold
---------------------------------------
Title: Vice President
------------------------------------
H&F ORCHARD PARTNERS, L.P.
By: H&F Orchard Investors, L.P.,
its general partner
By: H&F Orchard Investors, Inc.,
its general partner
By: /s/ Philip U. Hammarskjold
---------------------------------------
Title: Vice President
------------------------------------
H&F INTERNATIONAL PARTNERS, L.P.
By: H&F International Investors, L.P.,
its general partner
By: H&F International Investors, Inc.,
its general partner
By: /s/ Philip U. Hammarskjold
---------------------------------------
Title: Vice President
------------------------------------
-5-
<PAGE>
MAGELLAN PTE. LTD.
By: /s/ Kunnasagaran Chinniah
---------------------------------------
Title: Director
------------------------------------
-6-
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
SELLER FACE AMOUNT OF FACE AMOUNT OF PURCHASE PRICE FACE AMOUNT OF
DEBENTURES HELD PURCHASED OF PURCHASED DEBENTURES
(IN $) DEBENTURES(1) SECURITIES(2) CONTINUED TO
(IN $) (IN $) BE HELD(3)
(IN $)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HFCP II 92,970,000 46,475,685.18 102,767,292.60 46,494,314.82
- -----------------------------------------------------------------------------------------------
Orchard 5,860,000 2,929,408.12 6,477,523.49 2,930,591.88
- -----------------------------------------------------------------------------------------------
International 1,170,000 584,891.91 1,293,316.55 585,108.09
- -----------------------------------------------------------------------------------------------
Magellan 50,000,000 24,995,008.49 55,269,101.09 25,004,991.51
- -----------------------------------------------------------------------------------------------
TOTAL: 150,000,000 74,984,993.70 165,807,233.73 75,015,006.30
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
</TABLE>
- ----------------
(1) To be sold with associated Purchased Option Rights.
(2) Exclusive of accrued interest.
(3) To be redeemed by the Company in connection with the exercise of the
associated Option Rights as contemplated by the Option Right Exercise
Agreement.
-7-
<PAGE>
EXHIBIT 7(8)
Option Right Exercise Agreement
<PAGE>
OPTION RIGHT EXERCISE AGREEMENT
This Option Right Exercise Agreement (the "Agreement") is entered into
as of November 26, 1996, by and among FRANKLIN RESOURCES, INC., a Delaware
corporation (the "Parent"), TEMPLETON WORLDWIDE, INC., a Delaware corporation
(the "Company" and, with Parent, the "Issuer"), HELLMAN & FRIEDMAN CAPITAL
PARTNERS II, L.P., a California limited partnership ("HFCP II"), H&F ORCHARD
PARTNERS, L.P., a California limited partnership ("Orchard Partners"), H&F
INTERNATIONAL PARTNERS, L.P., a California limited partnership ("International
Partners"), and MAGELLAN PTE. LTD., a corporation formed under the laws of
Singapore ("Magellan" and, with HFCP II, Orchard Partners and International
Partners, collectively the "Sellers").
BACKGROUND
1. The Sellers are presently the holders of an aggregate of One
Hundred Fifty Million Dollars ($150,000,000) face amount of 6.25% Subordinated
Debentures due 2002 (the "Debentures"), which Debentures were issued pursuant to
an indenture among the Company, Parent and the Chase Manhattan Bank (the
"Trustee") dated as of July 30, 1992 (the "Indenture"). Each Debenture was
issued by the Company and guaranteed by the Parent as contemplated by the
Indenture. Each Debenture has attached thereto an Option Right (as defined in
the Indenture) issued by the Parent, which Option Right affords the holder of
the Debenture the right to acquire shares of the Parent's common stock, par
value ten cents ($.10) per share (the "Common Stock").
2. The Parent, the Company and the Sellers have entered into this
Agreement to provide for the exercise of the Option Rights (the "Associated
Option Rights") associated with Debentures having an aggregate face amount of
Seventy-five million, fifteen thousand six dollars and thirty cents
$75,015,006.30) pursuant to Section 1202 of the Indenture by means of the
surrender for redemption of such Debentures pursuant to Section 1113 of the
Indenture; the proceeds of such redemption are to be delivered by the Company to
the Parent to be applied, pursuant to the Indenture, to payment of the Option
Price. At the closing of the transactions contemplated by this Agreement,
Parent will deliver to the Sellers shares of Parent's Common Stock, together
with the Cash Payment as provided herein. Schedule I sets forth the face amount
of the Redeemed Debentures to be surrendered and the number of shares of the
Parent's Common Stock to be delivered upon exercise of the Associated Option
Rights, Schedule II sets forth the aggregate Cash Payment payable to HFCP II,
Orchard and International, and Schedule III sets forth the Cash Payment payable
to Magellan.
-1-
<PAGE>
Capitalized terms used without definition herein shall have the
meaning ascribed to them in the Indenture.
NOW, THEREFORE, the parties hereto agree as follows:
Section 1. EXERCISE OF ASSOCIATED OPTION RIGHTS. Subject to the
satisfaction of the Option Exercise Conditions set forth in Section 4, the
Sellers severally agree to exercise the Associated Option Rights pursuant to
Section 1202 of the Indenture. Schedule I sets forth the face amount of the
Redeemed Debentures to which the Associated Option Rights relate and the number
of shares of Parent's Common Stock to be delivered upon exercise of the
Associated Option Rights. The Option Price shall be paid by delivery of the
Redeemed Debentures for redemption by the Company as contemplated by Sections
1101, 1111, 1113 and 1202 of the Indenture. Such Redeemed Debentures shall be
redeemed by the Company on the Closing Date (as defined below) as provided in
the Indenture and the proceeds thereof remitted by the Company to the Parent in
full payment of the aggregate Option Price payable for exercise of the
Associated Option Rights as provided in the Indenture. The Parent shall deliver
to the Sellers on the Closing Date, against exercise of the Associated Option
Rights by the Sellers and payment of the Option Price by the Company on the
Seller's behalf, an aggregate of Two million three hundred sixty-one thousand
one hundred ninety (2,361,190) shares of Common Stock of Parent as provided in
Associated Option Rights, together with an aggregate cash payment (the "Cash
Payment") in an amount set forth on Schedule II (in the case of HFCP II, Orchard
and International) and Schedule III (in the case of Magellan). The Cash Payment
payable to HFCP II, Orchard and International shall be divided among them as
provided in written instructions provided to Parent prior to the Closing Date
(as defined below). The closing of the transactions contemplated hereby shall
take place on the second business day after the satisfaction of the Option
Exercise Conditions, or on such other date as is mutually agreed by the parties
(the "Closing Date"). Notwithstanding any provisions in the Indenture to the
contrary, neither party will make any payment to the other party in respect of
interest on the Redeemed Debentures surrendered pursuant to this Agreement other
than (a) if the transaction has not closed on or before December 15, 1996, the
interest payment then payable, and (b) as reflected in the calculation of the
Cash Payment.
Section 2. REPRESENTATIONS AND WARRANTIES OF SELLERS. Each Seller
severally represents and warrants that at the Closing: (a) the execution,
delivery and performance by each such Seller of this Agreement (i) are within
the corporate or partnership power and authority, as appropriate, of each such
Seller, (ii) have been duly authorized by all necessary action on the part of
such Seller, (iii) do not conflict with, or result in a breach of the terms,
conditions or provisions of, or constitute a default under, a limited
partnership agreement or
-2-
<PAGE>
organizational document of such Seller or any material contract or agreement to
which such Seller is a party, and (iv) will not violate any order, writ,
injunction, decree, judgment, ruling, law, rule or other regulation of any court
or governmental authority, domestic or foreign, applicable to such Seller or its
properties; (b) this Agreement constitutes a legal, valid and binding agreement
of such Seller enforceable against such Seller in accordance with its terms; and
(c) the delivery of the Purchased Securities to the Parent pursuant to this
Agreement will transfer to Parent legal and valid title thereto free and clear
of all claims, liens, charges or encumbrances of any kind or nature whatsoever
created by Sellers.
Section 3. REPRESENTATIONS AND WARRANTIES OF THE ISSUERS. Each
Issuer represents and warrants that at the Closing: (a) the execution, delivery
and performance by each Issuer of this Agreement (i) are within the corporate
power and authority of each Issuer, (ii) has been duly authorized by all
necessary corporate or other action on the part of each Issuer, (iii) does not
conflict with, or result in a breach of the terms, conditions or provisions of,
or constitute a default under, the certificate of incorporation, as amended, or
bylaws of either Issuer or any material contract or agreement to which such
Issuer or any material contract or agreement to which either Issuer is a party,
and (iv) will not violate any order, writ, injunction, decree, judgment, ruling,
law, rule or regulation of any court or governmental authority, domestic or
foreign, applicable to either Issuer or their subsidiaries or any of their
respective properties; and (b) this Agreement constitutes a legal, valid and
binding agreement of each Issuer enforceable against it in accordance with its
terms.
Section 4. CONDITIONS TO OPTION EXERCISE. The obligations of the
Sellers and the Issuers to complete the transactions contemplated by Section 1
hereof are subject to the following conditions (the "Option Exercise
Conditions":
(a) The parties shall have filed, to the extent required,
notification under the Hart-Scott-Rodino Antitrust Trust Improvements
Act (which filing shall be made by November 27, 1996) or been
terminated and any waiting period under such act shall have expired;
(b) The representations and warranties of each party to the other set
forth in Sections 2 and 3 hereof shall continue to be true and correct
on and as of the Closing Date, and each party shall deliver to the
other a certificate confirming such fact executed by a duly authorized
officer of such party; and
-3-
<PAGE>
(c) The conditions to each parties' obligations to close the
transactions contemplated by the Debenture Repurchase Agreement of
even date herewith shall have been satisfied or waived.
If the Closing Date has not occurred prior to January 1, 1997, this Agreement
shall terminate and be of no further force or effect.
Section 5. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original and all
of which together shall be deemed to be one and the same instrument.
Section 6. GOVERNING LAW. This Agreement shall be governed in all
respects by the laws of the State of California as such laws are applied to
agreements between California residents entered into and performed entirely
within California.
-4-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first written above.
FRANKLIN RESOURCES, INC.
By: /s/ Illegible
-------------------------
Title: Senior Vice President
----------------------
TEMPLETON WORLDWIDE, INC.
By: /s/ Illegible
-------------------------
Title: Executive Vice President
----------------------
-5-
<PAGE>
HELLMAN & FRIEDMAN CAPITAL PARTNERS II, L.P.
By: Hellman & Friedman Investors, L.P.,
its general partner
By: Hellman & Friedman Investors, Inc.,
its general partner
By: /s/ Philip U. Hammarskjold
---------------------------------------
Title: Vice President
------------------------------------
H&F ORCHARD PARTNERS, L.P.
By: H&F Orchard Investors, L.P.,
its general partner
By: H&F Orchard Investors, Inc.,
its general partner
By: /s/ Philip U. Hammarskjold
---------------------------------------
Title: Vice President
------------------------------------
H&F INTERNATIONAL PARTNERS, L.P.
By: H&F International Investors, L.P.,
its general partner
By: H&F International Investors, Inc.,
its general partner
By: /s/ Philip U. Hammarskjold
---------------------------------------
Title: Vice President
------------------------------------
-6-
<PAGE>
MAGELLAN PTE. LTD.
By: /s/ Kunnasagaran Chinniah
---------------------------------------
Title: Director
------------------------------------
-7-
<PAGE>
SCHEDULE I
-------------------------------------------------------
-------------------------------------------------------
SELLER REDEEMED SHARES SUBJECT TO
DEBENTURES ASSOCIATED OPTION
(IN $) RIGHTS
-------------------------------------------------------
HFCP II 46,494,314.82 1,463,466
-------------------------------------------------------
Orchard 2,930,591.88 92,244
-------------------------------------------------------
International 585,108.09 18,417
-------------------------------------------------------
Magellan 25,004,991.51 787,063
-------------------------------------------------------
TOTAL: 75,015,006.30 2,361,190
-------------------------------------------------------
-------------------------------------------------------
-8-
<PAGE>
SCHEDULE II
CASH PAYMENT BY CLOSING DATE
(H & F ENTITIES)
--------------------------------------
Current shares: 3.147624
Shares sold: 1.573497
Remaining shares: 1.574127
--------------------------------------
--------------------------------------
Discount rate: 10.0%
Assumed days in year: 360
--------------------------------------
Cash
Payment
$
Day:
11/15/96 $2,987,628
11/16/96 $2,988,419
11/17/96 $2,989,211
11/18/96 $2,990,002
11/19/96 $2,990,794
11/20/96 $2,991,586
11/21/96 $2,992,378
11/22/96 $2,993,170
11/23/96 $2,993,963
11/24/96 $2,994,756
11/25/96 $2,995,548
11/26/96 $2,996,342
11/27/96 $2,997,135
11/28/96 $2,997,929
11/29/96 $2,998,722
11/30/96 $2,999,516
12/01/96 $3,000,311
12/02/96 $3,001,105
12/03/96 $3,001,900
12/04/96 $3,002,695
12/05/96 $3,003,490
12/06/96 $3,004,285
12/07/96 $3,005,080
12/08/96 $3,005,876
12/09/96 $3,006,672
12/10/96 $3,007,468
12/11/96 $3,008,265
12/12/96 $3,009,061
12/13/96 $3,009,858
12/14/96 $3,010,655
12/15/96 $3,011,452
12/16/96 $1,281,855
12/17/96 $1,282,194
12/18/96 $1,282,534
12/19/96 $1,282,873
12/20/96 $1,283,213
12/21/96 $1,283,553
12/22/96 $1,283,893
12/23/96 $1,284,233
12/24/96 $1,284,573
12/25/96 $1,284,913
12/26/96 $1,285,253
12/27/96 $1,285,593
12/28/96 $1,285,934
12/29/96 $1,286,274
12/30/96 $1,286,615
12/31/96 $1,286,956
01/01/97 $1,475,493
-9-
<PAGE>
SCHEDULE III
CASH PAYMENT BY CLOSING DATE
(MAGELLAN)
--------------------------------------
Current shares: 1.573812
Shares sold: 0.786749
Remaining shares: 0.787063
--------------------------------------
--------------------------------------
Discount rate: 10.0%
Assumed days in year: 360
--------------------------------------
Cash
Payment
Day $
11/15/96 $1,330,299
11/16/96 $1,330,652
11/17/96 $1,331,004
11/18/96 $1,331,357
11/19/96 $1,331,709
11/20/96 $1,332,062
11/21/96 $1,332,414
11/22/96 $1,332,767
11/23/96 $1,333,120
11/24/96 $1,333,473
11/25/96 $1,333,826
11/26/96 $1,334,179
11/27/96 $1,334,533
11/28/96 $1,334,886
11/29/96 $1,335,239
11/30/96 $1,335,593
12/01/96 $1,335,947
12/02/96 $1,336,300
12/03/96 $1,336,654
12/04/96 $1,337,008
12/05/96 $1,337,362
12/06/96 $1,337,716
12/07/96 $1,338,070
12/08/96 $1,338,425
12/09/96 $1,338,779
12/10/96 $1,339,134
12/11/96 $1,339,488
12/12/96 $1,339,843
12/13/96 $1,340,198
12/14/96 $1,340,553
12/15/96 $1,340,907
12/16/96 $559,650
12/17/96 $559,798
12/18/96 $559,946
12/19/96 $560,094
12/20/96 $560,243
12/21/96 $560,391
12/22/96 $560,539
12/23/96 $560,688
12/24/96 $560,836
12/25/96 $560,985
12/26/96 $561,133
12/27/96 $561,282
12/28/96 $561,430
12/29/96 $561,579
12/30/96 $561,728
12/31/96 $561,877
01/01/97 $656,123
-10-
